DIY Down Payment Assistance for MLO's

Downpaymentresource.com provides a FREE DPA Lookup for homebuyers, MLO's and Realtors.


But the jewel of Downpaymentresource.com is Down Payment Connect, a subscription based DPA Directory and

promotional tool that provides a searchable database of comprehensive information for each DPA in the subscribers' state.


Plus, a landing page for every MLO to promote DPA from!

DownPaymentResource.com

A FREE public-facing and MLO resource that pares down all available programs for prospective homebuyers.




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Down Payment Connect

A searchable subscription database that provides comprehensive detail for city, county, SHIP & state DPA as well as proprietary and wholesale programs. Also, an MLO landing page to promote DPA.

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DPA FAQs

If you are new to down payment assistance programs, check out some of our MLO FAQs.




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Down Payment Resource®

DownPaymentResource.com

Get  your clients the DPA help they need !

DownPaymentResource.com is a website that houses detail about all U.S. DPA programs including popular county SHIP programs, city and state programs and now even DPA available to licensed loan originators through mortgage wholesalers.


Homebuyers

Access Down Payment Resource directly to get a snapshot of what DPA programs are available to you.


MLOs and Realtors

Details about available DPA programs and charting differences between 1st mortgages and added DPA products has been a struggle in the past for loan originators. Through Down Payment Connect, a subscription based service, you can  have access to a statewide DPA directory and are provided a DPA landing page that connects clients directly to you. The robust DPA Directory has recently added filters that can help sift out DPA for clients based on income levels, property type, location, if a grant or 2nd mortgage and more! 


DPA Frequent Questions from MLOs

  • Is income calculated the same for all DPA?

    Nearly every DPA income calculation uses HUD Income Limits found at HUD.gov. Go here , pick the state and then select a county and you will  be directed to an Income Limits Summary that provides Extremely  Low (30%), Very Low (50%), and Low Income (80%)Limits that change based on # of Persons in Family. Median Family Income is 100%. But check your specific program critieria which can vary.


    This is not the same income that you will see on Fannie Mae and Freddie Mac Area Median Income  Lookup Tools. That income is used per person and is critieria for Affordable conventional mortgages that can allow a 3% down payment and lower PMI. 


    State Bond  and Hometown Heroes income levels are also calculated differently. Check guidelines for family size and max. income.

  • WHY include Wholesaler DPA programs?

    In the last few years, wholesalers have begun to step up their game with DPA product offerings to independent MLOs. Some wholesalers have their own 1st and 2nd DPA mortgage programs where both are underwritten at one lender. Other wholesalers allow an outside 2nd mortgage to their FHA and/or conventional Fannie Mae or Freddie Mac mortgages per allowable CLTV guidelines. In 2023, the Florida Housing Finance Corp. (Fl only) made state Hometown Heroes, Bond and TBA programs available to independent loan originators through wholesale lenders. Recently, a growing number of wholesalers have added propritary DPA programs that offer no maximum income level,  no FTHB requirement and co-borrowers are allowed.


    Why are these multiple channels of  DPA important? Wholesaler business is not dependent on state funding, so when funds for DPA run out from the state, wholesalers can still provide independent loan originators with DPA programs. 

  • Do I as an MLO have to take the Homebuyer Class?

    Some DPA programs require that the MLO and also the realtor must take a class to be certified to provide specific DPA programs for mortgage clients. Check with each DPA provider.

  • How do I submit the DPA 2nd mortgage?

    Some DPA providers require that the DPA client meets with the program admin. upfront to make application and get approval 1st. Others require submission through a portal when the 1st mortgage is being submitted or is already approved. Check with the DPA provider to find out these details upfront as this can add to the timeframe of your contract.

  • Are DPA guidelines the same as 1st mortgage guidelines?

    The answer is usually No, so make sure to thoroughly check guidelines for any differences that will need to be abided by. Here's a few things that can be different: 

    • the 2nd mortgage payment may be deferred. If this is for at least 5 yrs, the 2nd mtg payment does not need to be counted in ratios. Sometimes higher income levels will not  allow deferrment of 2nd mtg. payment. 
    • Max. front and back ratios may differ. Some programs go by 1st mortgage guides or abide by AUS findings.
    • Clients may have too much liquid assets for program. Varies from program to program.

    Always thoroughly check 2nd mortgage guidelines.

  • Can I keep the DPA 2nd in place and refinance the 1st mortgage?

    In the past, DPA needed to be included in the refinance of the 1st mortgage. However, in today's higher rate environment, more and more DPA programs are allowing for a resubordination of the DPA 2nd to a refinanced  1st mortgage. There are usually specific restrictions on this, so check DPA guidelines for each program.


    If you are using Down Payment Connect, this direction can be found under Program Terms in Repayment Notes.

  • If I have DPA forgiveness on the 2nd mortgage , can I keep it if I move to another home?

    No. DPA and forgiveness programs are for owner-occupied properties. The 2nd DPA mortgage will need to be paid off.

DPA Program Frequently Asked Questions

  • What Is DPA And How Is If Funded?

    Many cities and localities including Indian Tribes and counties (usually listed as SHIP and NSP under type) have downpayment 2nd mortgages and grant assistance for eligible homebuyers. Florida at the state level also has DPA that is both the 1st and 2nd mtg and also just a 2nd mtg. 


    City, county, and state DPA programs are funded by local or state government entities and specific dollar amounts are allocated throughout the year. 

  • WHY include Wholesaler DPA Programs?

    In the last few years, wholesalers have begun to step up their game with DPA product offerings to independent MLOs. In addition to combined 1st mortgages with a 2nd  mortgage DPA included, more 1st mortgages where DPA 2nds can be added with select wholesalers are coming into the market. In 2023, the Florida Housing Finance Corp. made state Hometown Heroes, Bond and TBA programs available to independent loan originators through wholesale lenders, making the independent loan originator channel of DPA business more robust and competitive than ever! Why are these multiple channels of  DPA important? Wholesaler business is not dependent on state funding, so when funds for DPA run out, wholesalers can still provide independent loan originators with DPA programs. And a number of wholesaler programs offer higher ratios with better credit scores, a few have no max. income criteria, and interest rates are highly competitive with state programs.


    Wholesaler proprietary programs are available both in and outside of Florida.

  • If I Want DPA, Where Should I Start?

    Check County SHIP Funds First!


    The benefit of using county SHIP is that it provides a 2nd mortgage that is attached to an FHA, VA, Conventional, and USDA 1st mortgage with current interest rates. Sometimes 1st and 2nd DPA programs have a higher 1st and 2nd mortgage interest rate.


    However, county SHIP and local city DPA often have separate underwriting guidelines and restrictions, like income and ratio maximums and credit score minimums that are different than the 1st mortgage.


    Also, many county SHIP and city DPA programs require loan originators, realtors, and the client to take a HUD-approved class on homeownership in order to utilize DPA funds. Make sure to check all DPA underwriting criteria, availability of funds, and if you must be on an approved list before issuing a client pre-approval to find a home.  

Please let us know when you hear of new programs across the U.S. by emailing clients2homeowners@gmail.com

DPA Articles to Help MLOs

By Pam Marron July 10, 2024
Learn how Mortgage Loan Originators (MLOs) can assist clients in overcoming credit, budgeting, and down payment challenges through HomePrep.
By Pam Marron April 24, 2024
Down Payment Connect is already being used by MLOs and Realtors. Now it's available to HUD Counselors through HomePrep! Down payment assistance is quickly rising to the top need for clients wishing to purchase a home. Down Payment Connect , the back-end data provider for the parent Downpaymentresource.com , houses every down payment assistance program in the US and provides extremely detailed information laid out in a consistent format for each DPA program in their system. Throughout the last two years, Downpaymentresource.com administrators have worked with MLO’s and the HomePrep developers to add nearly all wholesale down payment assistance programs to their platform and they didn't stop there! Extensive filters that allow for selection of specific client needs such as type (ie. SFR, manufactured homes, condos, multi-family, ADU’s), uses like renovation, above AMI income levels, non-1st time homebuyers are just a few of the filters you will find along with stand alone 2nd mortgages, combined 1st and 2nd mortgages and grants. DownpaymentResource.com is also in many MLS systems across the US and provides limited directory information and a free landing page for realtors to promote that they use DPA. Both MLO’s and realtors can subscribe to Down Payment Connect to get more of the extensive directory and back-end tools. Now, through HomePrep, HUD counselors can also use the Down Payment Connect system to filter trhough DPA programs that clients are qualified for, and can even provide wholesale programs when working with an independent loan originator (often called a mortgage broker)! Through HomePrep, HUD counselors are now able to provide MLO’s and clients with the DPA programs that they have found the client is eligible for.
By Pam Marron April 10, 2023
Clients2Homeowners.com makes a pivot!
By Pam Marron January 26, 2023
Mortgage Loan Originators, Realtors and HUD Housing Counselors Who Need to Find and Promote Down Payment Assistance (DPA) to Clients Need this Tool!
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